Monday, June 25, 2018

As
discussed many times in this publication, the newly enacted tax plan has
provided some additional planning opportunities for high net worth individuals
due to the doubling of the estate and gift tax exemption. Specifically, under
the new tax regime, the estate and gift exemption has been increased to
$11,180,000 per person (for 2018) with slight annual adjustments moving
forward.

A strong
planning technique available for individuals to utilize this increased exemption
is through a Spousal Lifetime Access Trust (SLAT). A SLAT is an irrevocable
trust for the benefit of a grantor’s spouse (and descendants), with the spouse
serving as Trustee.

Since
the grantor’s spouse is both a trustee and beneficiary, the spouse may access
the assets within the irrevocable trust should the need arise. Thus a SLAT
enables a grantor to remove assets from his or her estate yet still retain some
control and access to the funds via his or her spouse.

Please
do not hesitate to contact Morris Law Group should you have any questions about
Spousal Lifetime Access Trusts.